Hawaii premium for gas has been growing

The difference between Hawaii
gasoline prices and those on the mainland, which had narrowed last fall, have
now widened again, as local prices rise far more quickly than those on the West
Coast.

As recently as September, according to data from the Oil
Price Information Service, the gap between the national average and the Hawaii
average was less than 60 cents a gallon. Now it's more than 70 cents. Prices
both here and on the mainline fell from October to the end of December but have
been rising since.

The AAA average price of self-serve regular gasoline in Honolulu
was $4.03 on Monday morning, 14 cents more than it was a month ago. Increases
have actually been smaller in Hilo and Wailuku, the only other towns in the
state where AAA does daily surveys. Wailuku prices are usually higher than
Hilo's but in recent weeks they have come closer together, above $4.05 but
below $4.10.

California has also seen some unusual pricing recently,
with Los Angeles average regular at $3.77, up 17 cents in one month, and a
nickel more than the average price in San Francisco, where gas usually costs
more than it does in L.A.

Hawaii, Alaska and California typically have the most
expensive gasoline, but at the moment gasoline sells for $3.83 a gallon in New
York City, more than Los Angeles.

AAA hires OPIS to electronically harvest the last credit
card receipts of the night from selected stations in thousands of cities
nationwide. The data are accurate to the degree that those stations reflect the
prices of all stations.

Gas stations price according to how much the retailer
paid the middleman for the fuel, mindful of what the station down the street is
charging, even if the two are resupplied with cheaper or more expensive fuel on
different days of the week.

Jobbers charge more to serve stations that are farther
away. Mortgage or rent payments on the property figure in as well. On neighbor
islands, the lack of competition for suppliers can mean higher prices. Maui has
a gasoline tax that the other counties don't. And if a station has a thriving
business in its convenience store operation, it may reduce its gasoline profit
margin to draw business to the store.

Although Hawaii usually has the most expensive per gallon
prices in the nation, it also has some of the shortest average commuting distances.

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